U.S. Coast Guard Seeking Comments on Proposed Rule Affecting Waterfront LNG Terminals

Yesterday’s Federal Register contained a notice of proposed rulemaking published by the U.S. Coast Guard for the purpose of harmonizing its regulations with FERC’s regulation of waterfront LNG import and export terminals. The proposed rule  would make the submission of a Waterway Suitability Assessment by a project proponent mandatory under Coast Guard rules, thus aligning it with current FERC rules. As is the practice now, the applicant would submit the WSA with its Letter of Intent to the Coast Guard. 

The rule also proposes to modify certain timing requirements, mandating that applicants file the LOI and WSA no later than the date the developer submits its pre-filing request to FERC, “but in all cases at least one year prior to the start of construction.” The Follow-on WSA would be required to be submitted when the applicant files its formal application with FERC. In addition, an annual reporting obligation is proposed for developers between the submission of the Follow-on WSA and commercial operation of the facility. Public comments on this proposed rulemaking are due by June 29, 2009.

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